Woori Bank Opens 'Business Succession TAX Consulting Center'

[Asia Economy Reporter Kim Hyo-jin] Woori Bank announced on the 26th that it will officially provide business succession support services to individual and corporate customers wishing to succeed family businesses, in partnership with accounting and consulting firm EY Han Young and law firm (Limited) Bae, Kim & Lee.

Previously, the business succession tax deduction allowed a maximum deduction of up to 50 billion KRW from the value of inherited business assets when the decedent had operated a small or medium-sized enterprise for more than 10 years and passed it on to the heir. However, entrepreneurs avoided applying due to the requirement of post-management for 10 years after inheritance, including conditions on shares, employment, and business type.

With the recent tax law revision, starting this year, the post-management period has been shortened from 10 years to 7 years, and the criteria for employment, business type, and asset disposal have been relaxed, which is expected to revitalize the business succession system.

Woori Bank provides comprehensive services including financial support to customers preparing for business succession through the operation of the 'Business Succession TAX Consulting Center' within the PB Customer Department. The bank supports the entire process from planning to execution and post-management of business succession and plans to offer educational programs and seminars for the next generation of entrepreneurs. However, services such as tax filing and will preparation, excluding consulting, are available for a fee through separate contracts with partner firms.

A Woori Bank official said, "Customers who attended Woori Bank’s business succession seminars held last year in Seoul and Busan felt that the business succession procedures were very challenging," adding, "Through the Business Succession TAX Consulting Center, experts will provide high-quality services."